Benefits of ERP Systems in Real-Life Business

Managing Information
And
Technology

Table of Contents
INTRODUCTION......................................................................................................................2
MAIN BODY.............................................................................................................................3
Categories of information systems.........................................................................................3
ERP systems...........................................................................................................................4
The benefits of ERP systems in a real-life business..............................................................5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................6

INTRODUCTION
Information system is defined as those systems which are helpful for the business
enterprise in organising and examine collected data and to interpret results thereon. With the
help of information system raw data can be converted into useful data and that can be
advantageous in the process of decision making. Information is basically sum of collected
data which when entered in a system for taking out useful results are known as information
system. This report is based on information system and enterprise resource planning with
their benefits and purposes. So for the purpose of maximising their profit business enterprises
uses ERP techniques. ERP is integrated computer based software which is used for managing
external and internal resources of a business. The main function of ERP is to stimulate flow
of information between business functions and other stakeholders for the purpose of
marinating transparency and to consolidate all the business operation in a uniform manner.
ERP helps the business in performing back office operations such as supply chain
management, customer relationship management, financial management and project
management in a considerable and error free manner. This report will cover the major type of
information system which is adopted by the businesses for their smooth operations and the
benefits of ERP system and their benefits in business entity. This report is going to give
overview about ERP in a business organisation and their objectives thereon. (Fadlalla, 2016)
MAIN BODY
Categories of information systems
An information system is a set of all those components which are interrelated and
operating to take out inputs, storage so as to convert the raw data into useful information
which can be used by the business in their decision making process and to forecast, plan,
control and coordinate between various activities within the business organisation. The major
function of using information system in an organisation is to make all the information
understandable by managerial person so as to make the tasks easy to perform. With the help
of proper information system the businesses are able to achieve their business goals within a
given timeframe. There are various information systems pertained which are used by business
organisation such as Data processing system (DPS), Decision support system (DSS),
Executive information system (EIS), Management information system (MIS). Decision
support system is used as tactical organisational level. It is called transaction processing
system (TPS) as because this system helps the business in dealing with regular transactions
which are occurring in day to day business routine. These transactions include inventory
control, data entry, accounting entries etc. Data processing system is used by those business
organisations under which data is produced at operational level only. This system can be used
by any organisations which are having large entry of data that means they have repeated
occurrence of any information (Luck and Gaspelin, 2017). For example in supermarket like
M&S data processing system can be used so as to scan the bar code of each item which is
sold by them during check out process. This system scans prices of those products which a
customer is willing to buy and the overall price is added in bill which the customer is going to
pay. So this way Data processing system help the business in easily operating their day to day